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Bitget, a major cryptocurrency exchange, is collaborating with Indian regulators to secure the necessary licensing to operate in compliance with local laws.
On July 3, the company announced its ongoing discussions with India’s Financial Intelligence Unit (FIU) to obtain Virtual Asset Service Provider (VASP) registration.
1/ We are aware of the current difficulty in accessing the Bitget platform in India. We’re actively exploring ways to serve the region while ensuring our platform meets the region's compliance requirements.
— Bitget India🇮🇳 (@BitgetIndia) July 3, 2024
India’s rapid growth in the crypto sector, highlighted by its leading adoption rate in 2023, according to Chainalysis, makes it a significant market for Bitget.
Although Bitget currently operates in India, it faces challenges in attracting new users due to the lack of VASP registration.
‘“India is a high-priority market for Bitget. We’re actively navigating through regulations to make sure the platform is compliant for us to serve our users in India,” revealed Bitget’s head of global communications, Simran Alphonso, in a July 3 X post.
BItget’s latest announcement comes on the heels of Binance, who has recently made a comeback to India following a 4-month ban placed on the exchange by the nation’s Financial Intelligence Unit (FIU).
This ban had affected nine foreign exchanges, including KuCoin and Binance, who have since complied with regulations, while OKX has ceased operations in India.
Through the ban, the FIU aimed to address significant tax leakage, estimated at INR 3000 crores (approximately USD 361.45 million) annually, caused by unregistered foreign exchanges.
With VASP registration, Bitget will adhere to the same rules as local exchanges, including a 1% tax deduction at source (TDS), a measure already implemented by KuCoin and other Indian exchanges.
Cryptocurrency regulation in India remains a contentious issue, with divided opinions among regulators on how to address the emerging industry.
India’s Finance Minister, Nirmala Sitharaman, has advocated for international collaboration to develop a comprehensive framework for cryptocurrencies, urging governments to recognize the potential benefits of blockchain technology. Conversely, the Reserve Bank of India maintains its call for a blanket ban on digital assets.